We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Prologis (PLD) Down 1.7% Since Earnings Report: Can It Rebound?
Read MoreHide Full Article
A month has gone by since the last earnings report for Prologis, Inc. (PLD - Free Report) . Shares have lost about 1.7% in that time frame.
Will the recent negative trend continue leading up to its next earnings release, or is PLD due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
Prologis Q1 FFO Beats on Higher Rent, Raises Guidance
Prologis reported first-quarter 2018 core FFO per share of 80 cents, beating the Zacks Consensus Estimate of 74 cents. Results also compared favorably with the year-ago figure of 63 cents. The company experienced solid operating results and higher net promote income.
Net effective rent change improved in the quarter, while period-end occupancy remained high. This industrial REIT also raised its guidance for 2018 core FFO per share and same-store NOI.
The company generated rental and other revenues of $560.7 million, which outpaced the Zacks Consensus Estimate of $547.4 million. The company had reported $572.1 million in the prior-year quarter.
Quarter in Detail
At the end of the reported quarter, occupancy level in the company’s owned and managed portfolio was 96.8%, expanding 20 basis points (bps) year over year.
During the quarter under review, Prologis signed 33 million square feet of leases in its owned and managed portfolio compared with 46 million square feet recorded in the year-ago period.
Prologis’ share of net effective rent change was 21.9% in the reported quarter compared with 18.5% recorded a year ago. The figure was led by the U.S. portfolio, which recorded impressive growth of 32.2%. Cash rent change was 9.2%, as against 7.7% recorded in the year-earlier quarter.
Cash same-store NOI registered 7.9% growth compared with 6.3% increase reported in the comparable period last year. This was led by 9.1% growth reported in the U.S. portfolio.
In first-quarter 2018, Prologis’ share of building acquisitions amounted to $3 million with a weighted average stabilized cap rate of 6.1%. Development stabilization aggregated $440 million, while development starts totaled $409 million, with 63.4% being build-to-suit. Furthermore, the company’s total dispositions and contributions came in at $642 million, with weighted average stabilized cap rate of 5.2%.
Liquidity
Finally, the company exited the first quarter with cash and cash equivalents of $458.1 million, up from $447.0 million recorded at the end of the prior quarter. It had more than $3.6 billion of liquidity. Additionally, the company remains focused on lowering its weighted average cost of debt that came in at 2.8%.
Outlook
Prologis raised its guidance for 2018 core FFO per share and cash same-store NOI. The company now projects core FFO per share in the range of $2.95-$3.01 compared with the prior guidance of $2.85-$2.95. This denotes an increase of 8 cents per share at the mid-point.
Moreover, cash same-store NOI (Prologis share) is projected at 5.5-6.5%, marginally up from the 5.0-6.0% estimated earlier.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in fresh estimates. There have been five revisions higher for the current quarter
At this time, PLD has a subpar Growth Score of D. Its Momentum is doing a lot better with an A. However, the stock was allocated a grade of F on the value side, putting it in the fifth quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
The company's stock is suitable solely for momentum based on our styles scores.
Outlook
Estimates have been trending upward for the stock and the magnitude of these revisions looks promising. It comes with little surprise PLD has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Prologis (PLD) Down 1.7% Since Earnings Report: Can It Rebound?
A month has gone by since the last earnings report for Prologis, Inc. (PLD - Free Report) . Shares have lost about 1.7% in that time frame.
Will the recent negative trend continue leading up to its next earnings release, or is PLD due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
Prologis Q1 FFO Beats on Higher Rent, Raises Guidance
Prologis reported first-quarter 2018 core FFO per share of 80 cents, beating the Zacks Consensus Estimate of 74 cents. Results also compared favorably with the year-ago figure of 63 cents. The company experienced solid operating results and higher net promote income.
Net effective rent change improved in the quarter, while period-end occupancy remained high. This industrial REIT also raised its guidance for 2018 core FFO per share and same-store NOI.
The company generated rental and other revenues of $560.7 million, which outpaced the Zacks Consensus Estimate of $547.4 million. The company had reported $572.1 million in the prior-year quarter.
Quarter in Detail
At the end of the reported quarter, occupancy level in the company’s owned and managed portfolio was 96.8%, expanding 20 basis points (bps) year over year.
During the quarter under review, Prologis signed 33 million square feet of leases in its owned and managed portfolio compared with 46 million square feet recorded in the year-ago period.
Prologis’ share of net effective rent change was 21.9% in the reported quarter compared with 18.5% recorded a year ago. The figure was led by the U.S. portfolio, which recorded impressive growth of 32.2%. Cash rent change was 9.2%, as against 7.7% recorded in the year-earlier quarter.
Cash same-store NOI registered 7.9% growth compared with 6.3% increase reported in the comparable period last year. This was led by 9.1% growth reported in the U.S. portfolio.
In first-quarter 2018, Prologis’ share of building acquisitions amounted to $3 million with a weighted average stabilized cap rate of 6.1%. Development stabilization aggregated $440 million, while development starts totaled $409 million, with 63.4% being build-to-suit. Furthermore, the company’s total dispositions and contributions came in at $642 million, with weighted average stabilized cap rate of 5.2%.
Liquidity
Finally, the company exited the first quarter with cash and cash equivalents of $458.1 million, up from $447.0 million recorded at the end of the prior quarter. It had more than $3.6 billion of liquidity. Additionally, the company remains focused on lowering its weighted average cost of debt that came in at 2.8%.
Outlook
Prologis raised its guidance for 2018 core FFO per share and cash same-store NOI. The company now projects core FFO per share in the range of $2.95-$3.01 compared with the prior guidance of $2.85-$2.95. This denotes an increase of 8 cents per share at the mid-point.
Moreover, cash same-store NOI (Prologis share) is projected at 5.5-6.5%, marginally up from the 5.0-6.0% estimated earlier.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in fresh estimates. There have been five revisions higher for the current quarter
Prologis, Inc. Price and Consensus
Prologis, Inc. Price and Consensus | Prologis, Inc. Quote
VGM Scores
At this time, PLD has a subpar Growth Score of D. Its Momentum is doing a lot better with an A. However, the stock was allocated a grade of F on the value side, putting it in the fifth quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
The company's stock is suitable solely for momentum based on our styles scores.
Outlook
Estimates have been trending upward for the stock and the magnitude of these revisions looks promising. It comes with little surprise PLD has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.